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Crypto DeFi

Aave Schedules Vote on Babylon Native Bitcoin Collateral for V4

Aave will hold a vote on adding Babylon native Bitcoin collateral to its V4 protocol, with LlamaRisk proposing a 300 BTC collateral cap. Activating the market would still require a separate onchain governance vote, meaning the initial vote does not immediately enable Bitcoin-backed borrowing on Aave.

Original source

AI take

The significance here is less about Bitcoin on Aave than about the governance sequencing: a risk-parameter proposal from LlamaRisk is being treated as a distinct step from the onchain vote that would actually switch the market on. That two-stage path keeps the 300 BTC cap a ceiling on ambition rather than an imminent change in protocol exposure. For Aave depositors and Babylon participants alike, the open question is whether the cap survives debate unchanged, and whether the second vote follows quickly or the proposal stalls between stages.

Generated by AI for reference only.

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